From the given values below, which machine should be selected using (a) Present worthMethod and (b) Future worth Method if interest rate is 10% per year?MachineABInitial Cost (Php)Annual Operating Cost146,00015,00080,00010,0003220,00010,00075,00025,000Annual RevenueSalvage ValueUseful Life (years)6

The present worth and future worth are methods to asses the feasibility of projects under…

Method and (b) Future worth Method if interest rate is 10% per year? Machine nitial Cost (Php) Annual Operating Cost A B 146,000 220,000 15,000 80,000 10,000 10,000 75,000 25,000 Annual Revenue Salvage Value Jseful Life (years) 3 6

Method and (b) Future worth Method if interest rate is 10% per year? Machine nitial Cost (Php) Annual Operating Cost A B 146,000 220,000 15,000 80,000 10,000 10,000 75,000 25,000 Annual Revenue Salvage Value Jseful Life (years) 3 6

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

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From the given values below, which machine should be selected using (a) Present worth
Method and (b) Future worth Method if interest rate is 10% per year?
Machine
A
B
Initial Cost (Php)
Annual Operating Cost
146,000
15,000
80,000
10,000
3
220,000
10,000
75,000
25,000
Annual Revenue
Salvage Value
Useful Life (years)
6

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4. A company is considering one of the following 3 mutually exclusive alternatives. Project Initial Investment operating Cost per year Revenue per year Salvage value Life (years) A B $63,000.00 $61,000.00 $15,000.00 $11,000.00 $38,000.00 $26,000.00 $12,000.00 $17,500.00 6 4 C $85,000.00 $13,000.00 $35,000.00 $16,000.00 12 If the company uses a MARR of 8%, which of the alternatives will they select using Present Worth Analysis?
E1
Provide solution please
24. Using a MARR of 15%, determine the annual worth of packaging equipment having an initial cost of P830 000, a 10-year life, and a salvage value of P140 000.00. A net revenue of P250 000.00 per year is expected from this equipment. (Ans. P91 516.08)
Give typed solution only What is the internal rate of return of a project costing $3,000; having after-tax cash flows of $1,500 in each of the two years of its two-year life; and a salvage value of $800at the end of the second year in addition to the $1,500 cash flow? (rounded to the nearest percentage) A. 13% B. 15% C. 16% D. 19%
Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of every year of a machine whose purchase value is 25,000$. Find the economic life of the machine assuming interest rate, i = 15%. End of Year (n) 1 2 3 4 5 6 7 8 9 10 Cost operation at the end of year ($) 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 Maintenance cost at the end of year ($) 300 400 500 600 700 800 900 1000 1100 1200 Salvage value ate end of the year ($) 9000 8000 7000 6000 5000 4000 3000 2000 1000 500
2. Now assume the company is considering two methods: automated method and manual system. The estimates for each method are shown below. Automated 400,000 30,000 (per 3 years) 150,000 (per year) 200,000 9 Manual 0 200,000 (per 6 years) 100,000 (per year) 500,000 Infinite First cost, $ Operating cost, $ Revenue, $ Salvage value Life, years The effective interest rate is 3% per quarter. Which alternative should be selected? Use Capitalized Cost Approach.
Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 10% per year and a study period of 10 years. Alternative C First Cost $-40,000 $-11,000 $-24,000 AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years $-2,000 $-200 $-500 $6,000 $200 10 The present worth of alternative C is $ and that of alternative D is $ (Click to select) voffers the lower present worth.
15. Given the following table of financial data for an asset that was bought today and whose service life is 3 years, what is its economic service life if the interest rate is 8%? Market Value ($) 23,000 18,000 15,000 12,000 Year (n) O&M Cost ($) 3,400 4,500 5,700 1 3
Can someone please solve this question using hand calculations only? PLEASE AND THANK YOU!!!
Determine the payback period (in years, round-off to 3 decimal places) at an interest rate of 7% per year for an asset that initially cost S30,000 , has a scrap value of $1700 whenever it in sold, and generates cash flow of 3,100 per year
QUESTION 3 If the first cost of an asset is $15,000, and an annual operating cost of $5000 with a salvage value of $3000 after 5 years. What will be the Annual worth and the Capital recovery. If i- 10% O AW -S-8465 and CR - $+4508 O AW = S-8465 and CR = $-4508 AW = S+4508 and CR = $-8465 O AW S-4508 and CR S-8465

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